How do you protect against fraud?

Unfortunately, the reality of the internet is; there is always a chance for fraud.

I have been caught off guard before, around 2 years ago I lost $100 or so. I'm pretty lucky that I didn't lose more than I did.

I usually have the buyer pay through paypal simply because it's the most convenient. To be honest though, I hate paypal. There policies are ridiculous and their resolution center is horrible.

I'm always worried when I make a big sale via paypal. I was thinking about sending out a data CD as the tangible item so I could have a tracking number on it.

What do you guys do to protect against fraud?

Well to protect against fraud I only use reputable websites (not to say that these can't be hacked) that have SSL certificates and I regularly check my bank statements online so that I know quickly if my details have been exposed.

ei im a newbie and I just read your post.. i hope this one could help you...

http://www.sec.gov/investor/pubs/cyberfraud.htm

I think part of taking business in the internet is the risk of fraud, what I do is I make sure that when I am selling something money order will be used of bank transfer. When buying I make escrow payments so that when the item doesn't arrive to me, I can cancel my payment. Paypal is crazy I actually used it before and although I wasn't scammed or anything, I question their service and their policies which is nuts.

If you are selling a service such as web design or content writing and accept payment via PayPal, I think you should ALWAYS send out the goods as tangible items as you mentioned. By sending a CD, the recipient has to confirm receipt of the goods. PayPal will always opt in favour of the buyer in a case where they claim none-receipt on non-tangible goods.

Shopping and banking safely online:

Before you buy
Before you buy anything online make a note of the address of the company that you are buying from. This should include details of the telephone and/or fax - never rely on just an email address.

Always use secure sites
These sites have 'https' in front of the web address which indicates that the company has been independently checked to make sure they are who they say they are. A yellow padlock symbol will appear in the browser window to show the payment process is secure.

More tips
* when transferring money use reliable firms
* never transfer or receive money for someone else
* check the sites' privacy and returns policy
* print out a copy of your order and any acknowledgement you receive
* check your bank statement carefully against anything you buy online
* keep your passwords secure

Regards

Internet auction sites expand your access to markets for buying and selling merchandise.The navigate online auctions and recognize potential snags, including late shipments, bogus escrow services, and check overpayment scams.

Well to protect against fraud I only use reputable websites that have SSL certificates.